NASHVILLE, Tenn., July 18, 2016 (GLOBE NEWSWIRE) -- CCA (NYSE:CXW) (the “Company” or “Corrections Corporation of America”), America's largest owner of partnership correctional, detention, and reentry facilities, announced today that it received an award from the California Department of Corrections and Rehabilitation (CDCR) to house up to 120 residents as part of The Male Community Reentry Program (MCRP) at CCA's 120-bed CAI-Boston Avenue residential reentry facility in San Diego, California.
The MCRP was designed by the CDCR to provide a range of community-based, rehabilitative services that assist with substance use disorders, mental health care, medical care, employment, education, housing, family reunification and social support to help participants successfully reenter the community and reduce recidivism.
The new contract contains an initial term extending to June 30, 2018, with three one-year renewal options, and is scheduled to commence on August 1, 2016. The new contract is expected to generate approximately $4.0 million of annualized revenue.
In April 2016, CCA was awarded a contract to provide residential reentry services by the Federal Bureau of Prisons (BOP), which was a rebid of existing contracts at both CCA's CAI facilities, CAI-Boston Avenue and CAI-Ocean View. During the contractual rebid process, CCA identified an opportunity to consolidate BOP resident populations at both facilities into the 483-bed CAI-Ocean View facility in order to make available the CAI-Boston Avenue facility for other potential partners and more efficiently utilize available capacity.
"We continue to focus our efforts on delivering innovative and cost effective solutions to government partners, particularly in our rapidly growing portfolio of residential reentry facilities and services, and are excited to expand our partnership with the state of California to include residential reentry services," said Damon Hininger, CCA's President and Chief Executive Officer.
CCA, a publicly traded real estate investment trust (REIT), is the nation’s largest owner of partnership correctional, detention, and residential reentry facilities and one of the largest prison operators in the United States. We own or control 74 correctional, detention and reentry facilities, with a design capacity of approximately 75,000 beds, and manage 11 additional facilities owned by our government partners with a total design capacity of approximately 14,000 beds, in 20 states and the District of Columbia. CCA specializes in owning, operating and managing prisons and other correctional facilities and providing residential, community reentry and prisoner transportation services for governmental agencies. In addition to providing fundamental residential services, our facilities offer a variety of rehabilitation and educational programs, including basic education, faith-based services, life skills and employment training and substance abuse treatment. These services are intended to help reduce recidivism and to prepare offenders for their successful reentry into society upon their release.
This press release contains statements as to our beliefs and expectations of the outcome of future events that are forward-looking statements as defined within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the statements made. In particular, the expected revenue to be generated under the new contract is subject to fluctuations in occupancy and anticipated demand for our services, and is therefore uncertain. A list of factors that could cause operating and financial results to differ are described in the filings we make from time to time with the Securities and Exchange Commission.
CCA takes no responsibility for updating the information contained in this press release following the date hereof to reflect events or circumstances occurring after the date hereof or the occurrence of unanticipated events or for any changes or modifications made to this press release or the information contained herein by any third-parties, including, but not limited to, any wire or internet services.
Contact: Investors: Cameron Hopewell - Managing Director, Investor Relations - (615) 263-3024 Media: Steve Owen – Managing Director, Communications - (615) 263-3107
Source:Corrections Corporation of America